1. Greg Flower Wealth Management
Discretionary Wealth Management
Alternative Investments – The New Asset Class
Presented as Part of the 2017 Forecast Event
Thursday, January 26th, 2017

2. Disclaimer
The information included in this document, including any opinion, is based on various sources believed to be reliable, but its accuracy and completeness is not guaranteed and Leede Jones Gable Inc.. does not assume any liability in providing it.  The information provided is current as of the date appearing on the document and Leede Jones Gable Inc... does not assume any obligation to update the information or give a description of further developments relating to the securities or material discussed.  It is for information only, is subject to change at any time, and does not constitute an offer or solicitation to buy or sell any securities referred to.  The information presented here and any financial service being offered is directed only at persons who are residents of a Canadian province or territory where Leede Jones Gable Inc.. is licensed.  Leede Jones Gable Inc.. is not permitted to recommend buying, selling or holding securities of any issuer to which it is related, and in the course of a distribution, to which it is connected, unless it makes a complete statement of its relationship, if any.  Leede Jones Gable Inc.. is not permitted to recommend buying of any secondary market securities of an issuer for whom it is actively engaged as an underwriter of a new issue.  Leede Financial Markets Inc., their affiliates, directors, officers, and employees may buy, sell, or hold a position in securities of a company mentioned herein, its affiliates or subsidiaries, and may also perform financial advisory services, investment banking or other services for, or have lending or other credit relationships with the same.  Directors, officers or employees of Leede Jones Gable Inc. may serve as directors of any company mentioned herein, its affiliates or subsidiaries.  © Leede Jones Gable Inc   Member CIPF and IIROC.
Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased options expire worthless, you will suffer a  total loss of your investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying interest or a future or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited. Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.
Not all securities are suitable for every investor.  If any of the securities interests you, please feel free to contact Greg Flower at The comments and opinions expressed herein reflect the personal views of Greg Flower. They may differ from the opinions of Leede Jones Gable Inc.. and should not be considered representative of the research beliefs, opinions or recommendations of Leede Jones Gable Inc..

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4. Alternative Investments – The New Asset Class
Traditionally, retirement portfolios would hold a large portion of Bonds starting at about 40% and increasing to a higher % with the age of the investor
Historically, bonds have had a low or negative correlation to equities but they do not generate the required income for most portfolios
Alternatives can provide the necessary return and low correlation characteristics required by a long term portfolio
Equities are still required in a portfolio but risk mitigating strategies such as covered calls and strategic diversification are required to ensure sustainability
How does a retiree create a portfolio that would finance a retirement in this
environment without taking undue risk?

5. Alternative Investments – What
Alternatives would include:
Private Debt
Private Equities
Hedge Funds
Long/Short Strategies
Market Neutral Strategies
Global Macro - investment strategy based on the interpretation and prediction of large-scale events related to national economies, history, and international relations.
Absolute Return
Managed Futures
Real Estate
Natural Resources (Timber, Oil and Gas Futures, Precious Metals)
Collectables (Art, Antiques, Gems, Fine Wines)
Not all Alternative Investments are suitable for discretionary portfolios
How does a retiree create a portfolio that would finance a retirement in this
environment without taking undue risk?

6. Alternative Investments – Why
Low or negative correlation to the market – protects against downturns
Lower volatility
Current global economy has linked more closely the returns of the traditional asset classes of Equities and Bonds
“Traditional 60/40 portfolios are not diversified, not equity-oriented and not appropriate for long term investors”
Source Yale Endowment fund report to investors 2014
How does a retiree create a portfolio that would finance a retirement in this
environment without taking undue risk?

7. Alternative Investments – Why
Diversification - Correlation of Various Investment Classes
How does a retiree create a portfolio that would finance a retirement in this
environment without taking undue risk?

8. Alternative Investments – Why
Protecting Portfolios within a lower trend growth and above trend inflation environment
How does a retiree create a portfolio that would finance a retirement in this
environment without taking undue risk?

9. Alternative Investments – Disadvantages
Illiquid – not listed on a public market will make it more difficult to sell when capital is required or more importantly when the investment does not work out as planned
Hard to Invest – Traditionally this has only been a class available to the ultra high net worth and the large pension funds
More recently funds have been made available but only for accredited investors
Some funds require a commitment to invest over a longer period of time
Some, such as collectables and precious metals, may require the additional cost of storage and insurance.
How does a retiree create a portfolio that would finance a retirement in this
environment without taking undue risk?

10. Alternative Investments – Current Solutions
Liquid Alternatives are becoming more mainstream which allows you to have liquidity on a daily, monthly or quarterly basis
Use of a Portfolio Manager, who uses alternatives in his models, who can give you access to accredited investments
Funds and ETFs are now available that give you access to most of the above types of Alternatives
But do your due diligence – only invest in proven managers
How does a retiree create a portfolio that would finance a retirement in this
environment without taking undue risk?

11. Greg Flower Wealth Management
Discretionary Wealth Management